The competition amongst the lenders is intense so thus the banks are keen to provide loans to the borrowers at competitive interest rates. The banks charge an interest rate of 6.50% per annum on wards which can go up to 10% per annum. The interest rates of the banks are on a continuous decline as the repo rate of RBI is declining continuously. Thus the proposal for home loans is becoming very attractive for the borrowers. The loans can be taken from any of the banks according to the choice of the borrower. The bank requires proper documents for the approval of loans. The banks can approve the loans only in case of a better CIBIL score, thus the CIBIL score should be proper. For the home loan, the house itself is the only mortgage which the bank can seal in case of the non-payment of the dues. The loans taken should be paid on time to avoid penalties being charged by the borrower. The loans if repaid on time help the borrower improve the CIBIL score. The loans can be taken for a period of a maximum of 30 years depending on the age of the borrower.
The borrower should survey the loan’s interest rates to avail the loans at lower interest rates. Lower interest rates help the borrower save money on the interest repayment and also help in the early repayment of the loans. The competition amongst the lenders is intense as there are around 21 PSU banks, 1000+ co-operative banks & 80 private banks. There are also NBFC’s which provide loans to the borrowers. Thus the competition amongst the lenders is intense that the lenders are keen to acquire clients for the loans. But the borrower should remember that even though the banks are keen to provide loans bank needs the honest customers who will pay the loans on time to the lenders. The bank’s interest rates are becoming more and more attractive and thus it is a good proposal for the home buyers to avail loans from the bank. The loans taken from the bank are exempted under income tax act 80C and section 24. Thus the borrower can save money on the interest payment and also loans installments payment. Bank interest rates vary according to the lender to lender. Some charge very low-interest rates while others charge high-interest rates. And some lenders are rigid in approval of the loans while some are lenient in approving the loans.
Ways to choose the best lenders for home loans
Avail the loans from the borrower who charges lower interest rates
The lender should be in such a way that the one who offers the loans at lower interest rates can take the loans from the banks at competitive interest rates. The survey should be done related to the interest rates being displayed on the finance portal of the website. Thus the loans should be taken at the lowest possible interest rates from the bank.
Check the past track record of the lender
The lenders can check the past track record of the lender through reviews on the internet portal. Some lenders may charge hidden charges to the borrowers thus due to which the borrower can change the decision of taking loans from the right lender. Thus doing the background check of the lender is very much necessary before getting the loans approved.
Choose the lender who has built some reputation in the market
The key lenders which can be preferred by the lenders are SBI, AXIS, HDFC, ICICI is amongst the top lenders of the banks in India. These banks have built some reputation in the markets and thus are amongst the key lenders amongst the banks in India. Even the NBFC are recommended ones from amongst the lenders.
Choose the lender who does not charge pre-payment penalty
The lender should be such that the one who does not charge a pre-payment penalty for the early repayment of the loans. Some lenders provide a rebate on the pre-payment of the loans, which can benefit the borrower by saving money on interest repayment. While the other lenders may charge a penalty on pre-payment of the loans. The payment terms & conditions are mentioned in the clause agreement of the loans. So thus the right borrower who provides a rebate on the loans should be chosen.
The right lender is the one who charges lower interest rates, lower processing fees & provides a rebate for the pre-payment. Also, the lender should not be amongst the misleading ones who charge hidden charges to the borrower. Thus the loans taken should be repaid on time is the duty of the borrower to avoid penalty being charged by the lender.